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Hyderabad: The Goods and Services Tax Appellate Tribunal (GSTAT) has directed Indian Railway Catering and Tourism Corporation ( IRCTC ) to deposit ₹50.4 crore in consumer welfare funds for failing to pass on tax benefits following the introduction of GST on Rail Neer packaged drinking water. The amount includes ₹1.8 crore related to supplies in Andhra Pradesh and ₹27.8 lakh in Telangana. A special bench of the Delhi principal bench, comprising judicial member Justice Mayank Kumar Jain and technical member Anil Kumar Gupta, pronounced the order on Oct 14, accepting Directorate General of Anti-Profiteering’s (DGAP) report dated June 11, 2021. The findings cover supplies made between July 1, 2017, and May 31, 2020. The proceedings stemmed from a complaint by Neeraj Kansal, then commissioner of CGST and central excise, Audit Thane, alleging that IRCTC continued to charge a maximum retail price (MRP) of ₹15 for Rail Neer despite a reduction in taxes after GST was introduced. It also maintained that Rail Neer was priced 25% below competing brands and that changes in its base price were driven by rising costs. The corporation cited its arrangement to share 15% of profits with the ministry. Rejecting IRCTC’s subsidy argument, the bench said Section 171 of the CGST Act did not exempt govt enterprises or subsidised supplies from anti-profiteering provisions.
IRCTC argued that the railway ministry fixed the MRP and that it supplied water to the railways and licensees rather than selling directly to passengers. The tribunal, however, held that IRCTC had the discretion to fix the transfer price at which it supplied water to railway departments and licensee-operated units. it was required to reduce the transfer price to pass on the tax benefits to consumers While it could not alter the MRP. It also ruled that water supplied on premium trains could not be treated as complimentary, as its cost was included in ticket fares.
Interest at 18% is payable from June 28, 2019, until deposit. The bench also imposed a 10% penalty, which will not apply if IRCTC deposits the entire profiteered amount along with interest within 30 days. GFX State/UT-wise profiteered amounts, including the tax component Andhra Pradesh: ₹1,83,02,944 Assam: ₹12,45,657 Bihar: ₹2,38,07,317 Chandigarh: ₹1,47,388 Chhattisgarh: ₹2,58,76,376 Delhi: ₹5,79,15,625 Gujarat: ₹1,94,74,135 Haryana: ₹27,91,578 Jammu & Kashmir: ₹3,93,243 Jharkhand: ₹17,85,582 Karnataka: ₹3,25,82,760 Kerala: ₹3,34,84,442 Madhya Pradesh: ₹1,12,73,156 Maharashtra: ₹10,46,34,791 Odisha: ₹1,51,120 Punjab: ₹30,36,893 Rajasthan: ₹74,18,128 Tamil Nadu: ₹5,65,05,078 Telangana: ₹27,84,944 Uttar Pradesh: ₹7,48,23,738 Uttarakhand: ₹6,00,329 West Bengal: ₹2,51,09,238 Total: ₹50,41,44,461 You Can Also Check: Gold Rate in Hyderabad | Silver Rate in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Hyderabad AQI | Weather in Hyderabad | Petrol Price in Hyderabad | Diesel Price in Hyderabad | CNG Price in Hyderabad | LPG Price in Hyderabad Stay updated with the latest Hyderabad news.
The tribunal upheld the investigation period and calculation methodology, including the finding that the same prices applied across plants, despite IRCTC’s objection to including seven plants commissioned after GST was introduced. IRCTC must deposit the amount within one month, with the sum divided equally between Central Consumer Welfare Fund and the respective state funds. Where a state or Union Territory has no consumer welfare fund, its share and interest must be transferred to the central fund. Download the TOI App.